Once upon a time in the not so distant past, most California manufactured home communities were 100% occupied. When a repossession occurred, local manufactured home retailers were quick to "snap up" the old home, reimburse the community owner for the past due space rent and other charges, pay the on-going monthly homesite rent and in some cases place a new home on the homesite. The cost to the community owner was a telephone call by the on-site manager to the local manufactured home retailer that went something like this, "Good morning Mike. This is Mary, the manager at ABC Manufactured Home Community. #123 went repo with Bank of America. The back rent is $1,200. The home is an older singlewide and in poor condition. The homesite will accommodate a 24' wide. Can you handle it?"
Well, as they say, "all good things come to an end. " Welcome to 1996, the era of vacant homesites, an abundance of repossessed homes, vanishing retail locations & cautious lenders. California manufactured home community owners & managers are currently faced with the marketing challenges fellow owners & managers are faced with in many parts of the country including Oregon, Nevada, Arizona, Texas, Georgia & Florida. "Today, we find ourselves not only competing against other manufactured home communities but also other forms of affordable housing including apartments, condos and single family homes. No longer can we sit-back and wait for prospective new residents to come to us. Nor can we rely 100% on manufactured home retailers to fill our communities. We must be proactive and aggressive with our marketing programs to attract and retain customers. We must create excitement in manufactured home community living....sell the lifestyle not the box", states Steve Sherwood, President of Clayton, Williams and Sherwood, a Newport Beach, CA investment management firm that specializes in manufactured home communities and apartments.
Sherwood adds, "Successful marketing starts with a marketing attitude that is visibly present among all on-site personnel. It also includes a regularly monitored feedback system of what is working. We then do more of what is working and less of what is not. "
Let's examine some common sense approaches to marketing your community.
First Impressions. Marketing experts tell us that prospective buyers form their first (and lasting) impression about a product or service in roughly 45 seconds. This "window of opportunity" begins when someone first views your property. What message does the property send? What does it "say" about your community? Let's inspect the community.
Property Inspection. The property manager should start the inspection a block or two from the community entrance(s). Observe what you see as you approach the property. If the "picture" needs improvement, improve it. For example, request the city remove an abandoned car. Ask the maintenance staff to pick up loose papers, trim weeds. When you first see the property, what message does it send? Observe the landscaping. Is it neat? Are bushes and shrubs trimmed? Is the grass green? Are sidewalks edged? Are fences in good repair? What do homes that are visible look like?
As you approach the entrance, examine the signage. Is it in good repair, freshly painted? Does it convey a friendly atmosphere such as "Welcome Home"? Or, is the entrance littered with "NO XXXX" signs such as NO PARKING, NO SOLICITING? (While this type of signage may be important from a legal standpoint, it does convey another message). Are the flowers colorful, the flower beds weed free? At night, is the entrance well lit?
As you enter the community, what positive and negative items first catch your eye? Is the community directory easy to read? Is there directional signage to the clubhouse, office and homes for sale? What is the condition and appearance of the first few homes and homesites?
As you approach the clubhouse, quickly form an opinion of what you see. Is this the opinion you want prospects to form? Are parking spaces oil free and freshly striped? Are parking stops freshly painted? Are certain spaces "Reserved For Prospective Residents"?
As you walk towards the main building, what is the condition of the walkways, handrails, landscaping, building exterior? Are the windows clean? Are screens in good repair? Are there window coverings? Enter the building. What is your first impression? Stop by the office. Is it organized and neat? What opinion did you form?
Inspect the common facilities including main room, kitchen, special function rooms and buildings (indoor shuffleboard, crafts area, exercise room, card and billiard rooms), rest rooms, swimming pool, saunas, locker rooms, jacuzzi, laundry rooms. What do you see? What is the condition of the facilities, furniture, wall coverings? Are the facilities tastefully decorated, well lit, clean? Do they smell fresh? What message is being sent? What message would you like to convey?
Resume your property tour. Scrutinize vacant homesites. Are they clear of debris? Is the grass mowed and are the weeds under control? Have the utilities been properly secured? Are they marked with "Future Resident Homesite" signs? Do leased spaces say, "Reserved for Future Resident"? What is the condition and appearance of the adjacent homes and homesites?
Inspect the community owned homes for sale or rent to determine if they are "Ready to Sell". Are the windows, floors, bathrooms, kitchen, etc. clean? Do the homes "smell nice"? Is the landscaping maintained? Is the driveway oil free? Are the homes inspected on a regular basis to make sure everything is always in order? What do the homes and homesites around the homes for sale look like? Are they well maintained? What message is the prospect getting?
Finally, what is the overall condition of the homes and homesites, community roadways, sidewalks, gutters and guest parking areas? Based upon your observations, would you recommend your community to a friend?
An essential component of marketing your property is creating a favorable, lasting first impression for prospective new residents. Focusing on property management "basics" every day helps the right impression. Remember you never "get a second chance to make a good first impression". Dale Andrews, President of Gold Key Homes, a leading manufactured home retailer in Las Vegas states, "Selling the manufactured home itself is only half the battle. What really "makes or breaks" the deal is the community where our customer anticipates living. Today's buyer is looking for a fresh, clean, well maintained and attractive community that will enhance his/her lifestyle. It really helps our sales personnel close deals when the customer's first impression of the community we take them to is favorable. "
Personnel. essential that all employees are focused on selling. Each team member must know and understand this. Courtesy patrol officers, maintenance and landscaping personnel, office assistants, pool monitors, weekend relief managers, activities co-ordinators, property managers, ......EVERYONE is a vital part of the marketing effort. Therefore, what image does your staff project? Are they friendly, courteous? Are they professionally attired? Do you provide clean uniforms for the maintenance staff?
Using the services of a professional "Shopper" provides an objective evaluation of the staff and community. A "Shopper" can determine if the management team and office staff understand basic sales principles. He/she will normally shop the property first by telephone and then in person. The "Shopper" can provide feedback on telephone answering, qualifying and appointment setting skills. After visiting the property, the "Shopper" will advise you on greeting, qualifying, listening and closing skills. In addition, he/she will comment on the overall appearance of the community, office and homes for sale or rent.
All employees must know and understand their role in marketing the property. Share the results of the Shoppers Report with all employees. Initiate training programs such as telephone answering skills, basic customer service, and meeting, greeting and qualifying prospects. Implement bonus programs to reward excellent customer service and achieving targeted occupancy levels. Steve Mulvany, President of Management Tools, Inc., a company specializing in productivity and service quality improvement emphasizes that "service quality is a philosophy....a way of life which your staff either endorses 100% or which becomes a detraction to attracting or retaining residents. The customer driven culture is articulated, modeled and enforced by the top person on-site...the "people edge" (friendly, efficient, quality oriented) employee is an attribute which is difficult to duplicate and creates a competitive edge in this environment."
Prospects. Identifying prospective new residents is an integral part of your marketing plan. Who is a prospect for your community? Where do they live now? What do they currently spend for housing? What is the monthly housing cost to live in your community? How does this compare to your competition including other manufactured home communities, apartments, single family homes and condos? Does your product match their needs? These important questions need to be addressed BEFORE preparing brochures and committing dollars to advertising.
One of the best sources for obtaining answers to these questions is by talking with your existing residents, especially those who have recently moved into the community. Meet with the last 12 - 15 new residents. Develop a list of specific questions to learn why they chose mobilehome community living, how they learned about your community, where they work, etc. Draw conclusions from the information gathered to guide you in developing advertising & direct mail campaigns.
What is the monthly cost to live in your community? Let's assume that a typical mid 1980's 3 bedroom, 2 bath double section home sells for $20,000. The monthly space rent is $450. With 15 year financing, 10% down and 12.5% interest rate, the monthly housing cost is $670 ($220 loan payment and $450 homesite rent). How does this compare with neighboring communities and other forms of housing? Please Note: Today's lenders have tight underwriting criteria. In the absence of credit worthy customers, you may have to provide financing for community owned homes.
Marketing Materials. Brochures & other handout materials convey information about your community to prospective residents. Your marketing kit should include a professionally prepared brochure, community map and information sheets about each vacant homesite and home for sale or rent. The community brochure should include a theme and message, a list of amenities, directions and office hours. Most promotional literature can be prepared in house using your word processing software, laser printer and specialty paper available through companies such as Paper Direct.
Advertising. Advertising is the action of making prospects aware of your community. The media, including a letter, flyer, brochure or display ad needs to quickly create interest so that the prospect takes ACTION such as a telephone call for additional information or a visit to the community.
ResidentReferral Program. Satisfied customers are an excellent source of prospects. Create a "Resident Referral Program". Reward existing customers (cash, free rent) for referring a new resident.
Measuring Results. Lead tracking systems should be implemented to measure the response rate and effectiveness of marketing campaigns. The system should include a telephone log, prospect information and qualifying form and follow up steps including letters and return calls to determine why the prospect did or did not move-in. The system also allows you to calculate the cost per lead and cost per sale. George Allen, President of GFA Management, a residential and commercial real estate management firm states, "A formal lead tracking system (i.e. telephone and walk-in traffic form) is necessary to document, compute and compare leasing and sales consultant 'conversion percentages'...that is to say telephone calls converted to visits, and visits to approved applications. The National Average for both computations is 25%."
Repossessed Homes - Working with Lenders. More and more, managers are dealing with banks and loan companies on abandoned and repossessed homes. If the home can be marketed and sold in place, implement the "Savior Program". Train the manager to work closely with the lender towards this objective. Today's market dictates that monthly space rent will be waived until a new resident is in place. The manager needs to work closely with the lender to facilitate interior and exterior remodeling and repairs. Community staff should maintain the landscaping. Go the extra mile to work with the lenders on homes you want to keep in your community. If the lender plans to wholesale the home, evaluate buying it. Wholesale buyers normally move the home to another location. The alternatives......vacant homesites or buying used home(s) to move into your community, set-up, remodel and sell are less attractive.
Ideas, Ideas. Apartment communities and new single family sub-divisions are excellent sources of marketing ideas. Take a day and shop them. What opinion did you form after the first 45 seconds? Evaluate how you are greeted and qualified. Look closely at everything you see...the appearance of the community, the staff, model apartments and homes. Gather promotional materials for ideas. Take pictures of signage, landscaping, etc. that you want to emulate. How does your community compare to the competition?
In closing:
John Turzer is the President of JLT & Associates, a Real Estate Market
Research Company specializing in pre-acquisition and development market
research, due diligence, problem property turnaround, marketing and sales,
on-site sales skills evaluations (shoppers reports), sales training,
budgeting, financial analysis and resident relations. He can be contacted at
(808) 283-3380 or by email at
JLT & Associates is committed to providing excellent customer service. We stand ready to do "Whatever It Takes" to meet the needs of our real estate clients.
